 Okay, we're back here live inside the cube. This is SiliconANGLE and Wikibon's exclusive coverage of OpenStack Summit 2013, Portland, Oregon. I'm John Furrier with SiliconANGLE. My co-host is Jeff Frick. This week, Dave Vellante is back East in Boston, holding down the fort. We're here with HP Roger Levy, who's the general manager of the public cloud of HP. Aussie HP aggressively getting in the cloud business, has been in the cloud business, invented the cloud. I worked for HP back in the days when they had the largest web presence and HP's history, Roger, is unmatched when it comes to the technology and has a lot of history. So, welcome to the cube. Well, thank you. So let's talk about the HP positioning in the cloud because there's a lot of talk about commodity cloud, infrastructure as a service, volume, when OpenStack is very attractive to enterprises because of the ability to get quick cloud construction and then build value around it. It's not about the hypervisor anymore. It's about the package or the operating system of the cloud or the data center. Do you agree with that statement and then how would you describe that world to that audience? What is this OpenStack? Well, I think really it's about the business outcomes. The technology, the technology, some technology's better than the others but really it's about what our customers want to do. They want to be able to get control of IT. They need to be able to have the agility of being time to value, time to market, time to revenue that they need. Being out with customers, their goal is I need to play a new service in five hours. Once the code's cut, once it's gone through testing, I need to be able to push a button, have it out worldwide in five hours. It's an interesting challenge. And there's a lot of elements issues too. So can you talk about some of the things that you guys see? I mean, because you guys have big requirements, big customers, big demands but sometimes the wrong version of Tomcat might be an issue or there's a different element elements and the ingredients of cloud is a lot of different layers of software. That could be a problem. What do you guys see there here and what do you guys bring to the table for cloud in that area? So, I mean, a big piece of that is essentially wetting the overall DevOps and automation capabilities into the cloud, both public cloud and private cloud. A lot of what we're doing is bringing that automation in, both internal to the cloud so that we can make sure that we have all the appropriate version control, all the appropriate different components that our customers need to consume and hold those constant but also provide the DevOps tooling for them to be able to deploy to the public cloud or to the private cloud and manage all those configuration, all of those issues themselves. I was in Boston last week talking to a CIO friend of mine. We met, watched a little bit of the NCAA games and had a lot of fun and we were talking about Moonshot which is right around the corner, it was prior to me going to New York for the Moonshot announcement and we talked about, he was a big HP customer, they have a lot of HP servers and he's going scale out. So, having an industry standard set of servers in the data center works but he also wants to do Hadoop in the cloud. He wants to go to the cloud. So, he's got some requirements that have to play with that scale out, some legacy software and some open source. Anybody wants to use the cloud and so for the folks that meet that kind of requirement which would be your customer set and maybe some new ones, could you share your vision for cloud services and what you guys are doing just to kind of get that out there. What is the vision for the public cloud for HP? So, let me first start with the vision for cloud overall from HP because really public cloud is one of the key factors in a much broader vision, much broader strategy. So, our strategy really is converge cloud which means having solutions for public, private as well as managed cloud that our customers can actually decide how they wish to deploy their workloads across the three and so our positioning is really hybrid. We have the concept of journey architect, cloud journey architect now that work with our customers, look at what their business outcomes are, look at what they want to do in terms of specific workloads and actually recommend the blend. What should go public? What could go private? What might be managed? I mean, do you want to really take care of your email yourself? We can do that as a managed service and put that entire strategy together. So, this hybrid aspect is critical to us which is also why OpenStack is critical to us. Having an overall software base, having an overall platform like OpenStack, open source, community based that will allow us to have portability, first of all among HP's own products which is certainly no small thing to achieve and we're there. And then to have portability with other cloud vendors for our customers because the last thing they want is to feel like they are locked in as they do in certain other cases. We get a lot of Twitter action here on theCUBE here. All right. So, the chef, you want to ask a question? Yeah, I was going to say, so you got great insight into customers because you guys have a lot of large enterprise customers and you said somebody who now wants to push out to production in five hours. What are you seeing from your customers or the types of applications or the types of new business challenges that here before we're not even possible to talk about that now with this type of technology are kind of the driving, kind of the tippy point of the arrow that are driving this inside these enterprises. That's a fantastic question. I mean, we're really seeing quite a range. A big piece, certainly analytics, business intelligence where customers want to be able to do fairly sophisticated, whether it's Hadoop, whether it's Vertica as data warehouse, whether it's autonomy. They want to be able to do very, very sophisticated analyses, but they don't necessarily want to make the investment in 1,000 extra servers hanging around. We're sort of the equivalent of, I'd like 1,000 servers in the next five minutes and take it back when I'm done. And that's really one of the great things we're seeing. But we're also seeing just a broad range of adoption. In some cases, great example, DreamWorks. Good customer of ours that we're working with with Panzura. For their overall rendering strategy, they use Panzura as a storage caching device. They have their own storage farm, which was built with HP, but for sort of the after product or mid-work, they can store that cost effectively back up on the public cloud, and not have to always have the maximum amount of storage they need and have that permanently within their estate. Then what about from a vertical point of view? Are there some who are kind of the not cutting-edge vertical customers that we would never think that are really starting to take advantage of some of this technology to move their business? We're seeing it all over. Media certainly is within the vanguard, and I think that's somewhat expected. But we're also seeing a range of companies. Everything from hardline manufacturing, which you would think would be sort of the last companies to move. They tend to be new build. They tend to be things like mobile app or inter-tiered web architectures where they need to get something up and running fast and they turn to the cloud. Excellent. So I have a question for you. I wanted to ask you anyway about your partnership with OpenStack and why you guys got involved. And obviously HP has a commitment to OpenStack. But before we got there, I got a question on Twitter. We've heard this before about some of the skeptics saying, oh, the big companies are coming in. Because OpenSource, a very fickle community, we know you guys, it's double-edged SOAR. It works really well and you can cut against you. So the question is, do you think the theory of OpenStack embraced by, we heard this before, same for IBM and Cisco, NHP as a cynical ploy to derail open standards? And where does AWS fit into the customer and or HP strategy? I mean, on Shadow IT is, you're seeing a lot of deployments of Amazon. Is there a place for AWS? So first is the cynical ploy to derail open standards. I don't think HP has that one, but certainly it was IBM and Cisco. There's been some discussion there. I want you to address that. No, no, it's a great question. I love conspiracy theory questions. Great for our media business. Always, always good. The reality is OpenStack is critical to us. Interoperability really being the cornerstone of what we need to achieve. And it's also a phenomenal selling point. I mean, actually before coming to HP, I was at a startup that was a major customer of one of those other big cloud providers. And I hated the fact that it was closed. I hated the fact that it was just a total black box. And OpenStack offers a lot of things. Interoperability is a key one, but transparency is another critical one. We have customers who love OpenStack as the base of a public cloud, because they can look at the code, they can work with our experts, they help to optimize and tune their workloads. Really hard to do with some other providers that's just not there. So I can understand people having some skepticism. The big guys are coming in. HP has been pretty multi-vendor for years. I mean, it's not really. We've been multi-vendor for years and quite frankly, given the support and given the activity, I mean, we have contributed tremendous numbers of lines of code to OpenStack where you continue to be highly active. I think that we've also proven that through our Linux days. And then the people that we have involved now, I mean, my past, I ran one of the large Linux distributions out there, the Cecil Linux distribution. So I'm bringing in all of that experience. So you know that world. You know that experience. You know that can cut both ways to open source community. Absolutely. But you know, what we see in the open source community and it's very fair is you get from the open source community what you contribute to the open source community. If you are a good community player, if you act in accordance with the appropriate ethics and rules of the community, you know, there's so much that you can take back from it. Yeah, I mean, look at Rackspace has really seen a great halo effect with this OpenStack initiative. AWS, is there a place for AWS within HP? Obviously that's a volume play, not a value play. I mean, HP is much more of a value proposition, value-based proposition around a converged cloud, but Amazon's cutting into the other price. Other than an example of don't be like them. Yeah, that's a... I can't take that as a no place for AWS in the HP strategy. No, but let's talk about volume and value, right? So, you know, you mentioned, you know, data center, servers there in the cloud. And we had Dimitri Steliana, the chief architect of Nudge Networks and Mountain View who's doing SDN stuff, the networks connect the data centers. Absolutely. And that is a key element with SDN, you're seeing a lot of that. Those two worlds, that is hybrid cloud. So hybrid cloud is the delivery between on-premise data centers and the cloud. So, given that, okay, what do you see that market? Because those requirements are different. Amazon is a pure volume. You're pushing buttons, you're getting micro payments on hypervisor, spinning up virtualization. It's good, there's places for that. Yeah, there's, I mean, you know, the way you guys are more value, right? Is that how you would describe it? Well, I would look at it as our view is being able to serve the enterprise, being able to take the enterprise experience from the data center and translating into the public cloud. That is implications on the technical level as implications on how you actually go and operate with customers, like, you know, we were talking about being transparent and actually helping them optimize workloads. And it really is a very different relationship model with our customers. You know, in terms of the other models, yeah, there are going to be VM vending machines, you know, putting your dime, get your VM, high volume, we will achieve cost effectiveness there as well. So you'll meet that, you'll meet and exceed that, so you have checked. If you look at what HP is doing, you know, you mentioned Moonshot, I'm really excited about Moonshot. You know, running data centers, running a public cloud. If I can take 10 racks of equipment, which costs me, you know, the average colo, 10 tiles, before you even put hardware in the colo, is about a half a million for the tile space, power and cooling. If I can take that down to a single with Moonshot. It's ridiculous. It's ridiculously awesome. I mean, this is a density, but the power savings. It's phenomenal. The numbers, Jim Godfrey was sharing the numbers, ridiculous numbers. Which is important, today on Twitter, Silicon Valley is being told to turn down the power. Turn down the power, it's all the hot. I mean, we live in Palo Alto, you can't even get power. They got to go to Mountain View to get power. Get good power, cheap power. This is one of the great advantages of doing a public cloud in a company like HP. But we have a top storage business. We have a top server business. We have a top networking business. We provide a tremendous amount of input and feedback back to them, work with them for the next generation of product that we can then bring back into the public cloud. So Amazon has had great success with developers, right? So can you talk about your strategy for getting those developers? Because DevOps really started kind of with, I originally called Amazon the junkyard dog of cloud where you can come in like a junkyard and get all your parts and put together the spare car and be driving around the road and do some stuff. But now they've really scaled up. They've really taken the operations out of the market. They've introduced a lot of new products and they're just rolling, right? So how do you guys, how are you going to compete against that and how do you get those developers on HP? Well, I think the great thing is we have a large, large number of developers that today currently use HP software products to do their job. And some of our new products, CSA, CDA, that really allow a smoother way to do DevOps. We're putting quite a big investment into that area. The way to basically get developers is to give them an environment that makes their lives easier, makes it, let them concentrate on doing what they do best, which is getting the code done and making it dead easy, dead simple, to basically be able to deploy, monitor, and maintain within the public cloud. And I think quite frankly, others have introduced some interesting new capabilities, but this is just the start. It's definitely not the finish. There's a lot of great stuff to come. What inning are we in? We just had the Peter Gamma's analogy on David Floyd. I think we just had the Star-Spangled Banner playing in the background. So, Rob, I have a question. HP is a big enterprise. And within kind of the eating your own dog food strategy, there's some interesting tales you could tell about how inside of HP, a division or a group is using the cloud strategy that's either being spearheaded by your group or is something your group's taken from. I mean, sure. What's going on inside the walls? We actually have a fairly large activity going on right now which is many of the products are sassifying. So to speak. Sassifying, I like that. Sassifying, so to speak. You know, I'm certainly not going to announce anything at the moment. You know, watch this space. We have Vertica, we have Autonomy, we have others out there. You can definitely expect you'll see them popping up in the public cloud pretty quickly. Great, great. We have one question from Ryan Cox on Twitter. Does HP have any plans for a developer laptop like Dell's Sputnik? Fantastic question, not my area of expertise. Yeah, so no comment. Not going to fall out of the cloud. Definitely. I heard they're spinning that out into a separate company. It's market so big. And it's a small market. I mean, Dell's got some kudos for that, but ultimately no one's rushing down buying Sputnik. No one's sort of rushing down there. And also you've got so many different choices right now in the end device area. So let's talk about HP software. I know you mentioned them briefly, because you're in the same building now, and cloud is now the software. Matt Morgan over there, I've been to a couple of those things. They have the Agile, I've been to Purdue a few times. Agile and DevOps is clearly the focus. HP's not known for the software powerhouse. They've bought Mercury Interactive and they've kind of hobbled along. And Dave Vellante was at the HP Summit Analyst Meeting and made a comment that he thinks the software group is the biggest opportunity for HP, for margin expansion overall, rising tide with the autonomy piece coming in and kind of bringing everything together. So with that, HP's not known for the software. Can you one either debate that, talk about it, or talk about what's happening within software so people can get a new Polaroid or Instagram picture in their head around what that looks like. I think the exciting thing is what's happening at software. So if you really look along the different dimensions, what's going on in analytics, the Vertica and Autonomy work, just absolutely fantastic products. Really excited about working with those teams to be able to eventually offer that in a very effective way as a service within the public cloud. The security space, things like tipping point, ArcSight, top notch security products. And by the way, we use those within the public cloud. One of the great things and one of the advantages is we are definitely, we talk about eating our own dog food, my boss Bill Vecti likes to talk about drinking our own champagne. These are fantastic products that we're deploying for ourselves. And then when you really get down to DevOps, the new CSA and CDA products are very specifically to address the whole new DevOps area. And very different mindset than the old approach to IT. This really is the new style. And you guys did announce just recently the first SaaS version of that product. Absolutely. Which is a major change over for HP, the SaaS application. I would expect to see the vast majority of software products in SaaS versions over some reasonable amount of time. We're going to ask Sar this question. I asked this question when I interviewed him in Germany at HP Discover. We got Donatelli's group, the enterprise group, which is converged infrastructure, software-led infrastructure. And we had a great moonshot announcement really impressed us. Especially just the revitalizing of Donatelli and Mark Potter, Jim Gontier. But they have other stuff. Cloud scaling is in their group. They have some cloud stuff in there. But you guys have a separate group that's the public cloud. And can you just connect the dots and explain just the internal accounting of where the cloud is? If you asked me this question a year ago, the answer would be very different. But right now, HP has done, I think, tremendous thing. We're a huge company, right? We're 300,000 plus people, lots of businesses, lots of individual products. So you mentioned SAR. SAR Glide now runs what we call Converge Cloud. Which is an overall coordinating and governance team for all of our cloud activities. If we truly want to be Converge Cloud, deliver a hybrid, we have to do some work to make that happen. You got to put that umbrella organization together. Exactly. So SAR's got the umbrella. He still has that. So he has architecture work, overall work with product management and coordinating roadmaps. As well as working with us on sales, go to market and marketing. Because a year ago, we were probably showing up at customers three different times, pitching three different things with three different stories and three different messages. And really confusing. Not a good business model. Not a good model. Now we have this console, the Cloud Journey Architect. We work together. We actually look at what is the best for the business outcome the customer wants to achieve. SAR's really been phenomenal to work with. We have joint work going on with our development teams. Really driving this large set of folks together to be one integrated team instead of three or four. And he'll be on tomorrow, one o'clock Wednesday. So if you're watching, want to hear him, we'll have SAR on tomorrow. And so you don't report into him. You're a peer of him? No, SAR and I both report to Bill Vecti. Okay, so you're the same boss. So you're on the same team. Absolutely. And SAR's office is all of about, oh, 40 feet away from mine. So. As they say, pass, shoot, score, right? So you guys do coordinate. But you're the GM. You have P and L responsibility for. Right, for public cloud. Public cloud. Okay, got it. And the private cloud fits in. So private cloud, we have our cloud system solution, which is out of enterprise group. And then we have our managed cloud solutions, which is out of our enterprise services group. Okay, great. So that's where SAR comes in. And SAR is the kind of the glue, the umbrella, sometimes the stick, you know, to put it all together. Yeah, well P and L also is a big stick at HP. I know that drives a lot of the action. Final question for you is the vision of HP. But I want you to, of the public cloud, I want you to put in context to OpenStack. So if you want to give two vision statements around, kind of where are you going from today? Shoot the arrow forward, maybe five years and just give a perspective. You know, give away any secrets, but like just your, what the arc of HP cloud is going to look like public cloud and where OpenStack fits in? So let's start with the general vision and then we can fit OpenStack into it. General vision again is being the enterprise class public cloud. And that really to us means taking the expectations from what customers have today in the data center, how they operate in the data center, their expectations of relationship, their expectations of support and translating that into a public cloud experience. I mean, actually having, you know, people answer the phone when you call for questions and help, kind of novel these days. And we really need to do quite a bit on all fronts to make that happen. I mean, ranging from the technical of having, you know, ultra solid infrastructure, high reliability, high availability, integrating in security, but you know, from a total vision point of view, it really is going up the stack. It's above the infrastructure. It's providing all the platform based services, providing the DevOps. The vision of the cloud is to make it as simple as possible for our customers to build, deploy, maintain and scale their workloads. So when we interview you next year at the OpenStack Summit or maybe in the fall, but let's say next year, look back on your year, what are your key, you know, management, you know, top three priorities for the year as in terms of accomplishments or metrics you want to check the boxes on? How do you look at that? And if you say, I want to have a very successful year we did one, two and three, what would that be? Well, I mean, certainly we have some metrics around actual customer acquisition and revenue, which unfortunately we can't talk about or I've got to fill out lots of paperwork for the SEC, which I really don't want to have to do. Let's just say, you know, modest aggressive revenue goals. Let's say quite aggressive revenue and customer acquisition goals. So yeah, we don't need to talk about, but like in other accomplishments, you know, headcount, is it like facilities expansion, SLA? So I mean, facilities expansion certainly is one. We, you know, today are US based, we're going around the world. Also a great advantage of being part of HP our enterprise services team have built a series of phenomenal data centers around the world, which we're going to leverage. You know, I've just been looking at pictures of the Aurora data center in Australia, and you know, I'm one of those folks who like, you know, think data centers are sexy and this is a sexy data center, so I'm really looking. It's actually the most popular post on Wikibon when they did the data center pictures, just pictures, no actually text, just wires and data centers, it's just like. But you know, certainly greater international expansion and then going up the stack. So open stack, critical to us being able to provide absolute bedrock infrastructure, but also working within the other teams. We're working with Red Dwarf and we've introduced our own, you know, database as a service and other teams like that, but really go above into the platform services, the DevOps layer and start to provide that extra value adds to the feature and functionality. We have a very aggressive and very, I think intriguing roadmap and look forward to talking to you in six months time. Roger, we certainly love to have you on theCUBE and following HP, HP always competes on value that's something that you guys are known for as a company and looking forward to following you guys and keeping track of you guys, certainly see you tonight at your event. John Furrier with Jeff Frick and Roger Levy here at HP General Manager of the Public Cloud. Don't count HP, Star Spangled Banner is just starting in this cloud business, as we could say, maybe top of the first inning, Jeff, but we got it all here. Exclusive coverage from the open stack, some of this is still going to angles theCUBE. We'll be right back with our next guest after this short break.